World's container companies plan to raise rates starting March 15 in effort to fight price declines caused by overcapacity; Shanghai Containerized Freight Index rises 13%, most in a year and first advance in two months

Cindy Allen

Cindy Allen

Mar 15, 2013 – Bloomberg LP

COPENHAGEN , March 15, 2013 () – A.P. Moeller-Maersk A/S, owner of the world’s largest container line, rose the most in 10 days in Copenhagen trading after freight rates out of China jumped.

Maersk’s B shares rose as much as 1.7 percent, the most since March 5. The stock gained 1 percent to 46,520 kroner at 9:45 a.m. local time, with trading volume at 22 percent of the three-month daily average. The gain outpaced a 0.1 percent increase in the Nasdaq OMX Copenhagen 20 index.

Container companies, including Copenhagen-based Maersk Line, have said they plan to raise rates starting today in an effort to combat price declines caused by overcapacity. The Shanghai Containerized Freight Index, a measure of box rates out of China, rose 13 percent today, the most in a year and the first advance in two months.

“It seems that container lines have enjoyed initial success in their efforts to boost rates, but it was also needed,” Jacob Pedersen, an analyst at Sydbank A/S, said by phone. “It will be interesting to see if rates go up again next week as some of the announced increases may not have filtered through yet in today’s SCFI.”

Today’s increase is “more or less in line with what I expected,” Pedersen said. The analyst, who’s based in the Danish city of Aabenraa, has a buy recommendation on Maersk shares.

Maersk Line cut capacity on the Asia/Europe route -- its biggest -- by about 21 percent last year amid a slowdown in demand. The shipping line said Feb. 22 that profit this year will be higher than the $461 million reached in 2012 as the company cuts costs and as growth in global container demand accelerates.

--Editors: Tasneem Brogger, Gelu Sulugiuc.

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tasneem Brogger at

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.